When a foreign business imports goods or performs other economic activities in the Netherlands, he must comply with the administrative obligations for Dutch VAT. This Value Added Tax (VAT), 21 percent for most goods, must be paid when you import goods into the Netherlands.
VAT can be reclaimed from the Dutch tax authorities, but your company must be registered in the Netherlands for this.
Such a registration involves a lot of administrative hassle and in most cases is not necessary at all. There is a solution for foreign companies: fiscal representation
Tax representation means that a company registered in the Netherlands acts as a representative of the importing foreign company, when it comes to the declaration and administration of VAT. A special permit is required to represent foreign companies. Customs Support Group has such a permit.
What are the advantages?
- You do not have to register your company (yourself) in the Netherlands.
- You do not have to set up and maintain VAT administration.
- You do not have to pay VAT directly upon import, this will be transferred to the VAT declaration of the representative. That saves on your cash flow.
- There are two types of tax representation: limited and general representation.
A number of requirements are the same for both types of representation:
- The tax representative must be established in the Netherlands.
- The representative must apply for a permit to represent the foreign company (the principal).
- From that moment onwards, the representative arranges, among other things, the VAT declaration, administration and the declaration of intra-Community supplies to other EU Member States (ICP declaration) and the statistics declaration with Statistics Netherlands.
If you would like to know more about tax representation and which form suits your company best, please contact one of our specialists. We are happy to assist you!